For the Quarter Ending June 2025
North America
• The Ammonium Polyphosphate (APP) import price (CFR Los Angeles) surged by 2.87% in Q2, closing the quarter on a bullish note at USD 2,091.67/MT.
• Supply tightness persisted throughout Q2 due to high tariffs on Chinese imports, Middle East disruptions, and sanctions on Russian trade.
• Buyers shifted sourcing to Canada and Germany, but shipment volumes remained constrained.
• Agricultural demand remained strong, while industrial segments like paints and coatings underperformed amid regulatory changes.
• Massachusetts regulations on flame retardants and a broader shift to non-halogenated variants added complexity to sourcing and compliance strategies.
Why did the price of APP change in July 2025 in North America?
• Prices rose amid continued geopolitical disruptions and high global freight rates.
• Tariffs on Chinese goods and unstable Middle East logistics constrained import availability.
• Robust demand from the fertilizer sector supported price gains.
• Paints and coatings sector stayed weak, but this was offset by regulatory-driven reformulation demand.
Asia-Pacific
• APP prices in Indonesia (CFR Tanjung Priok) inclined by 2.96% in Q2, settling at USD 2,014.67/MT.
• Congestion at Qingdao continued to delay shipments, though local overstocked inventories muted price impact.
• Fertilizer demand remained steady, while construction and coatings demand weakened due to monsoon effects.
• Indonesia’s Ministry of Trade lifted fertilizer import restrictions, aiming to simplify licensing and align with U.S. tariff policy timelines.
• Market fundamentals remained stable, with logistics costs accounting for most of the price rise.
Why did the price of APP change in July 2025 in Asia-Pacific?
• Prices rose slightly due to minor logistical cost increases, not fundamental demand shifts.
• Monsoon onset reduced coatings and construction-sector demand.
• Fertilizer consumption held firm, providing market support.
• Import policy reform improved outlook, but impact was not immediate during June.
Europe
• APP prices in Germany were stable to firm in Q2 2025 amid mixed demand trends and constrained import flows from Asia.
• Congestion at major Chinese ports affected European inventory timelines, especially for industrial-grade APP.
• Demand from paint and coating formulators remained soft, affected by construction slowdown and weak architectural demand.
• Fertilizer demand stayed moderate, with German agribusinesses sourcing from intra-EU suppliers due to reduced Asian availability.
• Regulatory scrutiny on phosphorus-based formulations, along with slow REACH registration renewals, created uncertainty for industrial buyers.
Why did the price of APP change in July 2025 in Europe?
• Prices held steady due to balanced demand and limited import availability from China and Southeast Asia.
• Paints and coatings consumption declined, but fertilizer and industrial detergent sectors maintained stable volumes.
• EU environmental regulations kept formulators cautious, delaying procurement for certain downstream applications.
• Market participants opted for inventory drawdowns, awaiting clarity on supply chain normalization and regulatory updates.
FAQs
1. What were the key drivers of APP price movement in Q2 2025?
Global supply chain constraints, port congestion (especially in Qingdao), fertilizer seasonality, and regulatory shifts were the main drivers.
2. Which sector dominated APP demand in Q2 2025?
The fertilizer industry drove the majority of demand across all regions, with minor contributions from detergents and flame retardants.
3. How is Europe’s regulatory environment impacting APP use?
Phosphorus formulation reviews and REACH registration uncertainty are causing caution among industrial buyers, limiting demand growth.
4. What is the APP Price Forecast for Q3 2025?
Prices may stabilize or soften if port congestion eases and fertilizer demand tapers post-monsoon. However, regulatory and tariff risks remain.
